Frequently Asked Questions
Self and family (non-senior): ₹25,000. Self and family (senior citizen 60+): ₹50,000. Parents (non-senior): ₹25,000. Parents (senior citizen 60+): ₹50,000. Maximum total deduction: ₹1,00,000 (if self + parents both senior citizens).
Yes, expenses up to ₹5,000 for preventive health check-up are included within the 80D limit (not over and above). So if your premium is ₹22,000 and check-up is ₹3,000, total is ₹25,000 (within limit).
From FY 2020-21, health insurance premium must be paid by any mode other than cash to claim 80D. Preventive health check-up up to ₹5,000 can be paid in cash.
Premium paid by employer from your salary (via salary deduction) is eligible. But if the employer pays entirely and you have no out-of-pocket cost, you cannot claim the deduction.
About this calculator
Section 80D lets you deduct health insurance premiums from your taxable income in the old tax regime. The limit depends on your age and your parents' age: ₹25,000 for self and family, ₹50,000 if you are a senior citizen, and a separate ₹25,000 or ₹50,000 for your parents. A preventive health check-up of up to ₹5,000 is included inside those limits.
This calculator works out your eligible deduction, the tax it saves at your slab rate with cess, and the effective cost of the premiums after tax. It shows the effect on your wallet, which is the useful number when you decide how much cover to buy.
How to use it
- Choose the Self & Family age: below 60 or 60 and above.
- Enter the Premium Paid and any Preventive Check-up (up to ₹5,000).
- Choose your parents' age group, or None, and enter their premium and check-up.
- Choose your Tax Slab.
- Press Calculate Tax Saving to see the deduction, the tax saved and the effective premium cost.
How the deduction works
Self deduction = min(self premium + check-up, ₹25,000 or ₹50,000). Parents deduction = min(parent premium + check-up, ₹25,000 or ₹50,000). Tax saved = Total deduction × Slab rate × 1.04. Effective cost = All premiums and check-ups paid − Tax saved. The check-up cost counts inside the limit, not on top of it, and can be paid in cash.
Worked example
You (below 60) pay ₹20,000 plus a ₹5,000 check-up. Your senior citizen parents pay ₹40,000 plus a ₹5,000 check-up. 30% slab.
| Self deduction (limit ₹25,000) | ₹25,000 |
| Parents deduction (limit ₹50,000) | ₹45,000 |
| Total 80D deduction | ₹70,000 |
| Tax saved with cess | ₹21,840 |
| Total paid out | ₹70,000 |
| Effective cost after tax | ₹48,160 |
The government effectively pays about 31% of the premium bill, but only if you are in the old regime. Under the new regime Section 80D gives no deduction, so buy cover for protection first and the tax benefit second.
Tips and common mistakes
- Pay premiums by any mode other than cash. Only the preventive check-up can be paid in cash.
- The self limit applies to you, your spouse and dependent children together.
- Parents can be claimed separately even if you do not live with them, as long as you pay the premium.
- A top-up or super top-up plan also qualifies, so a large cover at low premium is tax-efficient.
- If you are in the new regime, compare cover on merit. There is no deduction to chase.
Frequently asked questions
What is the Section 80D limit for FY 2026-27?
₹25,000 for self and family, ₹50,000 if the insured person is a senior citizen. The same limits apply to parents, so the combined maximum is ₹1,00,000.
Does 80D work in the new tax regime?
No. Section 80D is available only in the old regime.
Is the preventive health check-up extra?
No. The ₹5,000 check-up is part of the overall limit, not additional to it.
Can I claim premiums paid for my parents?
Yes, up to ₹25,000, or ₹50,000 if either parent is a senior citizen, provided you pay the premium by a non-cash mode.
Does the Income-tax Act 2025 change 80D?
The Income-tax Act, 2025 applies from 1 April 2026 and renumbers sections, but the deduction and its limits carry over. Forms and payslips may still show the old section numbers.
What if I pay a premium for several years at once?
The deduction is spread across the years the policy covers, not claimed fully in the year of payment.